Few Bitcoin-Related License Requests Reported by State Agencies

financeregulators09 Dec 2013 / Bloomberg – State financial regulators have received few applications for licensing Bitcoin businesses even as they’ve handled many inquiries about them, according to David Cotney, the commissioner of banks in Massachusetts.

The licensing inquiries came after the Treasury Department’s Financial Crimes Enforcement Network said in March that companies that trade virtual currencies including Bitcoin are considered money transmitters for the purpose of complying with anti-money-laundering rules. Money transmitters, which include Western Union Co. (WU) and MoneyGram International Inc. (MGI), require licenses in most states.

“We are looking at one application in our state,” Cotney said at a briefing in Washington organized by the Conference of State Banking Supervisors. “Other states are looking at similar numbers.”

Shane Deal, deputy commissioner of financial institutions at the Minnesota Department of Commerce, said his agency has fielded “lots of inquiries” about virtual currencies, but that he has no sense of what kinds of companies will seek licenses.

“We know it’s coming, we just don’t know what,” Deal said…… Read more



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